It's shutting down, but the fediverse is healing around it. Piefed.social has seen a huge influx, and people are moving accounts slowly but surely.
Lemm.ee shutting down isn't ideal from a service stand point, but it is showing how robust the fediverse is. It's acting like the internet used to, routing around damage to continue to work. That's amazing, and hopeful.
I think people also use it in a "sugar glaze" sense like donuts or whatever, but this is the internet. Ain't no way that's thr actual origin.